UK Retail Sales Improves On High Prices

For the fourth consecutive time, UK Retail sales progresses despite the Brexit-Hit Pound.

UK Retail Sales has reportedly improved for the fourth time in a row in September. The growth was supported by greater food and clothing prices on the rears of the Brexit-Hit Pound Sterling.

“September’s performance will have left many retailers with smiles on their faces… However, with potential interest rate rises on the horizon, shaky consumer confidence and ever increasing levels of household debt, uncertainty remains. We’re now moving into the final quarter, which will ultimately define whether 2017 has been a good or bad year for retailers.” Head of Retail at KMPG Paul Martin told reports.

According to a report posted on Tuesday, the British Retail Consortium and KPMG revealed that the like-for-like sales for September added 1.9% in a year-over-year basis which was also the fourth consecutive gain for the said periods. More purchases for essential items from UK Consumers were recorded showing that the UK retailers shrug off the impact of the declining Pound in the said period. This was the fastest increase since April.

A shopping district in England

“September’s performance will have left many retailers with smiles on their faces… However, with potential interest rate rises on the horizon, shaky consumer confidence and ever increasing levels of household debt, uncertainty remains. We’re now moving into the final quarter, which will ultimately define whether 2017 has been a good or bad year for retailers.” Head of Retail at KMPG Paul Martin told reports.

The figures posted also indicated that the sales for food alone impacted the total data in where it had a 2.5% increase for September. The data for non-Food Items surged by 0.5% or 0.9% in a total basis. If to add, the total data for September totaled to 3.5%.

However, sales for Non-Food items struggled in September in UK. The data for in-store like-for-like sales unfortunately tumbled by 2% which is 1.5% in total value since the beginning of the upsurge to September.

Additionally, these kinds of items performed better in the e-commerce industry which indicated a 10.7% increase in September. This data has exceeded the three-month average of 10% in addition to the 12-month average of 8.8%.

“Retailers have worked hard to keep a lid on price rises following the depreciation of the pound, but with a potent mix of more expensive imports and increasing business costs from various government policies, something had to give at some point. “ Chief Executive Helen Dickinson told reports. “September’s overall growth may increase the likelihood of uplift in interest rates in November. So with stronger headwinds brewing, it’s vital government keep a tight lid on those costs under its control, which impact on retailers, the cost of doing business and ultimately consumers”.

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